Without referring to the preprogrammed function on your financial calculator, us
ID: 2621574 • Letter: W
Question
Without referring to the preprogrammed function on your financial calculator, use the basic formula for future value along with the given interest rate, r, and the number of periods, n, to calculate the future value of $1 in each of the cases shown in the following table.
Case Interest rate, r Number of periods, n
A 12% 2
B 6 3
C 9 2
D 3 4
Explanation / Answer
Case A<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Interest Rate, r = 12 %
Number of Periods, n = 2
Future Value of $ 1
= $ 1